Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

There were no material changes in the carrying amount of goodwill during the three months ended March 31, 2018.

Other Intangible Assets

The following table sets forth the gross carrying amounts and accumulated amortization of the Company’s other intangible assets as of March 31, 2018 and December 31, 2017:



	March 31, 2018					December 31, 2017
(in thousands)	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Definite-lived intangible assets:
Contracts and related customer relationships	$	6,908,491	$	(2,008,075	)	$	6,748,355	$	(1,749,327	)
Dealer relationships	1,603,700		(167,404		)	1,605,910		(146,299		)
Other	197,588		(151,747		)	195,363		(130,227		)
Total amortizable intangible assets	8,709,779		(2,327,226		)	8,549,628		(2,025,853		)
Indefinite-lived intangible assets:
Trade name	1,333,000		—			1,333,000		—
Total intangible assets	$	10,042,779	$	(2,327,226	)	$	9,882,628	$	(2,025,853	)

For the three months ended March 31, 2018, the changes in the net carrying amount of customer contracts acquired and customer relationships were as follows:



(in thousands)
Balance as of December 31, 2017	$	4,999,028
Acquisition of customer relationships	13,394
Customer contract additions, net of dealer charge-backs	160,065
Amortization	(261,114		)
Currency translation and other	(10,957		)
Balance as of March 31, 2018	$	4,900,416

The weighted-average amortization period for customer contract additions primarily purchased through the ADT Authorized Dealer Network during the three months ended March 31, 2018 was 15 years. Amortization expense for definite-lived intangible assets for the periods presented was as follows:



	For the Three Months Ended
(in thousands)	March 31, 2018		March 31, 2017
Definite-lived intangible asset amortization expense	$	303,977	$	288,293

The estimated aggregate amortization expense for definite-lived intangible assets is expected to be as follows:



(in thousands)
Remainder of 2018	$	862,245
2019	$	1,079,054
2020	$	1,037,013
2021	$	944,550
2022	$	605,323
2023	$	256,004

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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